MONETARY SUCCESS

Washington State recreational cannabis has been a resounding success. Prices have reduced to the point that customers are satisfied, and there is enough competition with the black market that sales are booming. Tax rates and prohibitive regulations have lessened, allowing producers, processors and retailers to begin to turn a profit. Some brands flourish, while others flounder, all typical of an emerging, competitive industry.

This healthy cannabis market is reflected in the tax dollars earned from recreational cannabis sales. So far in 2016, Washington State residents have spent over $900 million on legal cannabis in, earning an impressive $205 million in excise tax, according to 502data.com. Hundreds of billions of dollars in taxes for a state struggling to pay for education, is something skeptical residents should take note of.

All of that cannabis, and all of that money, means something else for Washington State: Jobs! With 341 retailers, and 983 producer and processors, Washington State is a cannabis-producing and selling powerhouse. Each one of those facilities, large or small, is providing skilled jobs for members of the community. That’s thousands and thousands of jobs for Washington residents, all over the diverse state. The Washington State Liquor and Cannabis Board opened up licensing for producers, processors and retailers in recent years, which may explain 2016’s surge in cannabis sales. In 2016, sales so far are already more than $400 million higher than 2015, which ended at $555 million in retail sales.

“Washington State has earned $350 million so far in taxes. That’s since the inception of the Washington State recreational market, so since July of 2014 until present. As far as what I think about it, I look to other States that have legalized recreational cannabis. Mainly Colorado, but now Oregon, and others. Washington State is paying the highest percentage in taxes, by far. More than any other state.”

All those hundreds of millions of dollars mean the state, and some canna-businesses, are raking in the dough. But what do canna-business owners think about all this tax money? CULTURE spoke with Brandon Caffrey, CEO of Creekside Cannabis, to ask him what he thinks about taxes and cannabis in Washington.

“Washington State has earned $350 million so far in taxes. That’s since the inception of the Washington State recreational market, so since July of 2014 until present. As far as what I think about it, I look to other states that have legalized recreational cannabis. Mainly Colorado, but now Oregon, and others. Washington State is paying the highest percentage in taxes, by far. More than any other state.

“So on the one hand it’s a lot, because obviously, it affects prices. But on the other hand, I don’t necessarily think it’s a bad thing. Especially now, after what just happened with the election. There’s a lot of uncertainty about what will happen with recreational. I think having so much tax revenue go to the state is probably one thing that will save our industry. No matter who’s in power, right or left,” Caffrey told CULTURE.

“There’s a lot of uncertainty about what will happen with recreational. I think having so much tax revenue go to the State is probably one thing that will save our industry. No matter who’s in power. Right or left.”

No matter what happens with federal or state government goings-on, one thing is for sure. When your industry is bringing in hundreds of millions of dollars for the state each year, it makes all arguments against it a little weaker. Hopefully, future administrations will continue to love money more than government overreach.